Brian Schroeder is no longer the head of Binance.US
Brian Schroeder is no longer the head of Binance.US
Binance.US CEO Brian Schroeder has stepped down from his position amid massive staff cuts due to increased scrutiny from U.S. regulators.
Binance.US is preparing to implement a second round of job cuts, which will affect around 100 of the exchange's employees in various positions, as it faces a number of mounting legal and operational challenges. The exchange has been under regulatory pressure since the U.S. Securities and Exchange Commission filed a lawsuit against Binance, Changpeng Zhao, and Binance.US in June, accusing them of mishandling user funds, misleading investors and regulators, and violating securities regulations.
Shortly after these lawsuits and the loss of its banking partners, Binance.US had to introduce alternative methods for clients to convert dollars into cryptocurrency, further complicating its operations in the U.S. market.
According to information published by Bloomberg, Norman Reed, Binance.US's Chief Legal Officer, will temporarily take over as the company's CEO.
Binance.US, known as BAM Trading Services Inc., began operations in 2019 and targets U.S. users who are banned from using Binance.
It is worth noting that Binance, the parent company of Binance.US, which is run by Changpeng Zhao, is facing similar problems. A number of executives in charge of the company's Russian operations left the exchange in early September amid accusations that Binance was violating international sanctions imposed by Western countries and the U.S. against Russia for its military incursion into the neighboring country. Also leaving Binance were Chief Strategy Officer Patrick Hillman and Chief Compliance Officer Steven Christie.
What's happening at Binance.US, however, reflects the common challenges faced by many cryptocurrency exchanges in the U.S. due to increased regulatory scrutiny and an unclear regulatory framework for cryptocurrencies.
Read also: Bitfinex CTO and Tether to testify in the 2019 trial.
